work contract-construction

[Dalia Felix]

dear experts,

the ST rate for a 'builder company' is 4.944 % of gross value as per the new Rule 2A (ii). what is the advantage of it over the 'composition scheme'? In both the cases, material value is to be included and input credit of the ST paid to the sub-contractor is available. please clarify me

AI Summary

Service Tax Rate for Builders Under Rule 2A(ii) Explained: Composition Scheme Without Cenvat Credit at 4.944% A user inquired about the service tax rate of 4.944% for builder companies under Rule 2A (ii) and its advantages over the composition scheme, noting that material value is included and input credit for service tax paid to sub-contractors is available. An expert clarified that the 4.944% rate applies to those working under the Composition Scheme without Cenvat Credit.